Day Two of Monetize 2015 picked up right where we left off last night.
Aria CEO Tom Dibble and SVP of Marketing Jon Gettinger set the stage for the conversation around The New Normal – the massive disruption across companies and industries where upstarts like Netflix and Uber are forging new business models and forcing incumbent giants to transform quickly if they want to maintain their market share.
The Monetization Imperative for the Digital Age
Our morning keynote focused on the digital age, and how the Digital Revolution, as it’s often referred, has changed the way we do business. Andrew Dailey, Managing Director at MGI Research, talked about monetization’s evolving role in the digital era and its huge opportunity to make a difference.
Dailey stressed time-to-market as a major factor for success today. The speed of getting things done is the difference between companies that get it done right and companies that don’t. In fact, by 2020 most Fortune 1000 companies will see reductions in their time-to-market by over 40%, already evident in the fact that the traditional 8-10 year business cycle has been cut down to 5 years.
Dailey’s example was pure Apple: when they introduced the iPod over a decade ago, it created an $18 billion market. Within a couple of years Apple increased the storage capacity, released different models and colors, and claimed 80% of the market. Microsoft’s Zune did not go-to-market and iterate quickly enough to keep up with the iPod and lost its chance to stake claim in a multi-billion dollar market.
According to Dailey, it’s time to rethink industry structures. It’s no longer about what company can create and which can launch a new product the quickest; it’s about what company can take existing products/services and repackage them to quickly release into the market. Apple didn’t release a new product each time; it released a new version of an already well-selling product that did better than the one before. Big data and the Internet of Things (IoT) produces vast amounts of data – companies must ask how they can pull the data from their plans and combine them with what they know about historical production rates to create a “new” offering.
This morning focused on different lenses of monetization and what it means for business, from being dubbed a necessary evil to functioning as a brand extension to driving new market entry and disruption. This often-overlooked aspect is taking center stage as not only a major revenue generator but also a major differentiator.
This New Normal means the time/cost envelope is rapidly shrinking and new strategies, processes, tools, and levels of investment are required for success. If you’re looking for sustainable growth, the new imperative is to put your monetization strategy at the base of your digital business plans.